June 12, 2008 - FAAC Incorporated, part of Arotech Corporation’s (NasdaqGM: ARTX) Training and Simulation Division, has received a contract modification to add Buffalo vehicle driver training capability to the USMC Operator Driving Simulator System (USMC ODS). The modification, valued at $2.8M, includes simulation of the Buffalo vehicle operations, kits to add Buffalo capability to 42 simulators, as well as funding for three additional dual-simulator trailer systems. A total of 21 systems have been procured as part of FAAC’s contract with the U.S. Marine Corps Systems Command, Program Manager for Training Systems (PM TRASYS) for the development and acquisition of operator training systems.

The Buffalo is a mine-resistant, route clearance vehicle that is used to identify and help dispose of discovered mines and improvised explosive devices (IEDs). With this addition, the USMC ODS can be configured to train MRAP Buffalo, MRAP Cougar Cat I, MK-23 (with and without Armor kit), and up-armored HMMWV driving operations.

“The USMC ODS has been able to systematically address the urgent training requirements as they arise. This contract first addressed up-armored HMMWV operation, then Cougar MRAP vehicles, and now the Buffalo route clearance vehicle,” stated Kurt Flosky, FAAC Executive Vice President. “The ability to easily and quickly add new training capability to the USMC ODS provides for a long-term training solution that adapts to meet changing training needs.”

About Arotech’s Training and Simulation Division
Arotech’s Training and Simulation Division (ATSD) provides world-class simulation based training solutions. ATSD develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for engineering, use-of-force, and driver training simulations for military, law enforcement, security, municipal and private industry personnel. The division’s fully interactive driver-training systems feature state-of-the-art vehicle simulator technology enabling training in situation awareness, risk analysis and decision-making, emergency reaction and avoidance procedures, and conscientious equipment operation. The division’s use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division provides consulting and developmental support for engineering simulation solutions. The division also supplies pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

Arotech’s Training and Simulation Division consists of FAAC Incorporated (www.faac.com), IES Interactive Training (www.ies-usa.com), and Realtime Technologies, Inc. (www.simcreator.com).

About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Training and Simulation, Armor, and Battery and Power Systems.

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